[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 1517 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                S. 1517

   To enhance domestic energy security by increasing production from 
      fossil-based resources in the outer Continental Shelf in an 
          economically and environmentally responsible manner.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 24, 2009

 Ms. Murkowski (for herself and Ms. Landrieu) introduced the following 
bill; which was read twice and referred to the Committee on Energy and 
                           Natural Resources

_______________________________________________________________________

                                 A BILL


 
   To enhance domestic energy security by increasing production from 
      fossil-based resources in the outer Continental Shelf in an 
          economically and environmentally responsible manner.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Domestic Energy Security Act of 
2009''.

SEC. 2. MORATORIUM OF OIL AND GAS LEASING IN CERTAIN AREAS OF THE GULF 
              OF MEXICO.

    (a) Moratorium.--Section 104 of the Gulf of Mexico Energy Security 
Act of 2006 (43 U.S.C. 1331 note; Public Law 109-432) is amended--
            (1) by striking subsection (a) and inserting the following:
    ``(a) In General.--Except as provided in subsection (d), effective 
during the period beginning on the date of enactment of this Act and 
ending on June 30, 2022, the Secretary shall not offer for leasing, 
preleasing, or any related activity in the Eastern Planning Area that 
is within 45 miles of the coastline of the State of Florida.''; and
            (2) by adding at the end the following:
    ``(d) Exceptions.--
            ``(1) Definitions.--In this paragraph:
                    ``(A) Destin dome area.--The term `Destin Dome 
                Area' means the area in the Central and Eastern 
                Planning Areas of the outer Continental Shelf 
                identified as `Destin Dome (NH16-08)' in the document 
                entitled `MMS Gulf of Mexico Region Planning Areas and 
                Active Leases' and dated May 14, 2009.
                    ``(B) Pensacola area.--The term `Pensacola Area' 
                means the area in the Central and Eastern Planning 
                Areas of the outer Continental Shelf identified as 
                `Pensacola (NH16-05)' in the document entitled `MMS 
                Gulf of Mexico Region Planning Areas and Active Leases' 
                and dated May 14, 2009.
            ``(2) Authorized areas.--The Secretary may offer for 
        leasing any area in the Destin Dome Area or the Pensacola 
        Area.''.
    (b) National Defense Area.--Section 12(d) of the Outer Continental 
Shelf Lands Act (43 U.S.C. 1341(d)) is amended--
            (1) by striking ``The United States'' and inserting the 
        following:
            ``(1) In general.--The United States''; and
            (2) by adding at the end the following:
            ``(2) Review.--Annually, the Secretary of Defense shall--
                    ``(A) review the areas of the outer Continental 
                Shelf that have been designated as restricted from 
                exploration and operation to determine whether the 
                areas should remain under restriction; and
                    ``(B) based on the review under subparagraph (A), 
                make recommendations to the President.''.
    (c) Leasing of Moratorium Areas.--
            (1) In general.--As soon as practicable after the date of 
        enactment of this Act, the Secretary may offer for leasing 
        under the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et 
        seq.), any areas made available for leasing as a result of the 
        amendments made by subsection (a).
            (2) Administration.--Notwithstanding the omission of any 
        areas made available for leasing under paragraph (1) from the 
        applicable 5-year plan developed by the Secretary pursuant to 
        section 18 of the Outer Continental Shelf Lands Act (43 U.S.C. 
        1344), the Secretary may, as soon as practicable after the date 
        of enactment of this Act, amend the applicable plan to include 
        the areas.
    (d) Disposition of Qualified Outer Continental Shelf Revenues From 
Moratorium Areas.--
            (1) Definitions.--In this subsection:
                    (A) Gulf producing state.--The term ``Gulf 
                producing State'' means each of the States of Alabama, 
                Florida, Louisiana, Mississippi, and Texas.
                    (B) Qualified outer continental shelf revenues.--
                The term ``qualified outer Continental Shelf revenues'' 
                means all rentals, royalties, bonus bids, and other 
                sums due and payable to the United States from leases 
                entered into on or after the date of enactment of this 
                Act for any areas made available as a result of the 
                amendments made by subsection (a).
            (2) Disposition.--Notwithstanding section 9 of the Outer 
        Continental Shelf Lands Act (43 U.S.C. 1338) and subject to the 
        other provisions of his subsection, for each fiscal year, the 
        Secretary of the Treasury shall deposit 37.5 percent of 
        qualified outer Continental Shelf revenues in a special account 
        in the Treasury from which the Secretary shall disburse 100 
        percent to Gulf producing States in accordance with paragraph 
        (3).
            (3) Allocation.--Effective for fiscal year 2010 and each 
        subsequent fiscal year, the amount made available under 
        paragraph (2) shall be allocated to each Gulf producing State 
        in amounts (based on a formula established by the Secretary by 
        regulation) that are inversely proportional to the respective 
        distances between the point on the coastline of each Gulf 
        producing State that is closest to the geographic center of the 
        applicable leased tract and the geographic center of the leased 
        tract.
            (4) Conforming amendment.--Section 105(f)(2) of the Gulf of 
        Mexico Energy Security Act of 2006 (43 U.S.C. 1331 note; Public 
        Law 109-432) is amended by striking ``from any area'' and 
        inserting ``from--
                    ``(A) any area in the Central and Eastern Planning 
                Areas of the outer Continental Shelf identified as 
                `2022 Moratoria Area' in the document entitled `P.L. 
                109-432' and dated December 20, 2006; and
                    ``(B) any area''.
    (e) Conforming Amendment.--Section 105 of the Department of the 
Interior, Environment, and Related Agencies Appropriations Act, 2006 
(Public Law 109-54; 119 Stat. 521) (as amended by section 103(d) of the 
Gulf of Mexico Energy Security Act of 2006 (43 U.S.C. 1331 note; Public 
Law 109-432)) is amended by inserting ``and any other area that the 
Secretary of the Interior may offer for leasing, preleasing, or any 
related activity under section 104 of that Act'' after ``2006)''.

SEC. 3. REVENUE SHARING FROM OUTER CONTINENTAL SHELF AREAS IN CERTAIN 
              COASTAL STATES.

    Section 18 of the Outer Continental Shelf Lands Act (43 U.S.C. 
1344) is amended by adding at the end the following:
    ``(i) Revenue Sharing From Outer Continental Shelf Areas in Certain 
Coastal States.--
            ``(1) Definitions.--In this subsection through subsection 
        (j):
                    ``(A) Coastal political subdivision.--The term 
                `coastal political subdivision' of a coastal State 
                means a county-equivalent subdivision of a coastal 
                State all or part of which--
                            ``(i) lies within the coastal zone (as 
                        defined in section 304 of the Coastal Zone 
                        Management Act of 1972 (16 U.S.C. 1453); and
                            ``(ii) the closest point of which is not 
                        more than 300 statute miles from the geographic 
                        center of any leased tract.
                    ``(B) Coastal state.--The term `coastal State' 
                means a State with a coastal seaward boundary within 
                300 statute miles distance of the geographic center of 
                a leased tract in an Outer Continental Shelf planning 
                area that--
                            ``(i) as of January 1, 2000, had no oil or 
                        natural gas production; and
                            ``(ii) is not a Gulf producing State (as 
                        defined in section 102 of the Gulf of Mexico 
                        Energy Security Act of 2006 (43 U.S.C. 1331 
                        note; Public Law 109-432)).
                    ``(C) Distance.--The terms `distance' and 
                `distances' mean minimum great circle distance and 
                distances, respectively.
                    ``(D) Leased tract.--The term `leased tract' means 
                a tract leased under this Act for the purpose of 
                drilling for, developing, and producing oil or natural 
                gas resources.
                    ``(E) Outer continental shelf area.--The term 
                `outer Continental Shelf area' means--
                            ``(i) any area withdrawn from disposition 
                        by leasing by the `Memorandum on Withdrawal of 
                        Certain Areas of the United States Outer 
                        Continental Shelf from Leasing Disposition', 
                        from 34 Weekly Comp. Pres. Doc. 1111, dated 
                        June 12, 1998; or
                            ``(ii) any area of the outer Continental 
                        Shelf as to which Congress has denied the use 
                        of appropriated funds or other means for 
                        preleasing, leasing, or related activities.
                    ``(F) Southeastern state.--The term `Southeastern 
                State' means each of the States of Georgia, North 
                Carolina, South Carolina, and Virginia.
            ``(2) Post leasing revenues.--If the Governor or the 
        Legislature of a coastal State requests the Secretary to allow 
        leasing in an outer Continental Shelf area and the Secretary 
        allows the leasing, in addition to any bonus bids, the coastal 
        State shall, without further appropriation or action, receive, 
        from leasing of the area, 37.5 percent of--
                    ``(A) any lease rental payments;
                    ``(B) any lease royalty payments;
                    ``(C) any royalty proceeds from a sale of royalties 
                taken in kind by the Secretary; and
                    ``(D) any other revenues from a bidding system 
                under section 8.
            ``(3) Allocation among coastal political subdivisions of 
        states.--
                    ``(A) In general.--The Secretary shall pay 20 
                percent of the allocable share of each coastal State, 
                as determined under this subsection, directly to 
                certain coastal political subdivisions of the coastal 
                State.
                    ``(B) Allocation.--
                            ``(i) In general.--For each leased tract 
                        used to calculate the allocation of a coastal 
                        State, the Secretary shall pay the coastal 
                        political subdivisions within 300 miles of the 
                        geographic center of the leased tract based on 
                        the relative distance of such coastal political 
                        subdivisions from the leased tract in 
                        accordance with this subparagraph.
                            ``(ii) Distances.--For each coastal 
                        political subdivision described in clause (i), 
                        the Secretary shall determine the distance 
                        between the point on the coastal political 
                        subdivision coastline closest to the geographic 
                        center of the leased tract and the geographic 
                        center of the tract.
                            ``(iii) Payments.--The Secretary shall 
                        divide and allocate the qualified Outer 
                        Continental Shelf revenues derived from the 
                        leased tract among coastal political 
                        subdivisions described in clause (i) in amounts 
                        that are inversely proportional to the 
                        applicable distances determined under clause 
                        (ii).
            ``(4) Conservation royalty.--After making distributions 
        under paragraphs (1) and (2) and section 31, the Secretary 
        shall, without further appropriation or action, distribute a 
        conservation royalty equal to 12.5 percent of Federal royalty 
        revenues derived from an area leased under this section from 
        all areas leased under this section for any year, into the land 
        and water conservation fund established under section 2 of the 
        Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l-5) 
        to provide financial assistance to States under section 6 of 
        that Act (16 U.S.C. 460l-8).
            ``(5) Deficit reduction.--
                    ``(A) In general.--After making distributions in 
                accordance with paragraphs (1) and (2) and in 
                accordance with section 31, the Secretary shall, 
                without further appropriation or action, distribute an 
                amount equal to 50 percent of Federal royalty revenues 
                derived from all areas leased under this section for 
                any year, into direct Federal deficit reduction.
                    ``(B) Budgetary treatment.--Any amounts distributed 
                into direct Federal deficit reduction under this 
                paragraph shall not be included for purposes 
                determining budget levels under section 201 of S. Con. 
                Res. 21 (110th Congress).''.

SEC. 4. REVENUE SHARING FROM AREAS IN ALASKA ADJACENT ZONE.

    Section 18 of the Outer Continental Shelf Lands Act (43 U.S.C. 
1344) (as amended by section 3) is amended by adding at the end the 
following:
    ``(j) Revenue Sharing From Areas in Alaska Adjacent Zone.--
            ``(1) In general.--Except as provided in paragraph (2), 
        effective beginning on the date that is 5 years after the date 
        of enactment of this subsection, revenues from production that 
        derives from an area in the Alaska Adjacent Zone shall be 
        distributed in the same proportion and for the same uses as 
        provided in subsection (i).
            ``(2) Allocation among regional corporations.--
                    ``(A) In general.--The Secretary shall pay 33 
                percent of any allocable share of the State of Alaska, 
                as determined under this section, directly to certain 
                Regional Corporations established under section 7(a) of 
                the Alaska Native Claims Settlement Act (43 U.S.C. 
                1606(a)).
                    ``(B) Allocation.--
                            ``(i) In general.--For each leased tract 
                        used to calculate the allocation of the State 
                        of Alaska, the Secretary shall pay the Regional 
                        Corporations, after determining those Native 
                        villages within the region of the Regional 
                        Corporation which are within 300 miles of the 
                        geographic center of the leased tract based on 
                        the relative distance of such villages from the 
                        leased tract, in accordance with this 
                        paragraph.
                            ``(ii) Distances.--For each such village, 
                        the Secretary shall determine the distance 
                        between the point in the village closest to the 
                        geographic center of the leased tract and the 
                        geographic center of the tract.
                            ``(iii) Payments.--The Secretary shall 
                        divide and allocate the qualified Outer 
                        Continental Shelf revenues derived from the 
                        leased tract among the qualifying Regional 
                        Corporations in amounts that are inversely 
                        proportional to the distances of all of the 
                        Native villages within each qualifying region.
                            ``(iv) Revenues.--All revenues received by 
                        each Regional Corporation shall be--
                                    ``(I) treated by the Regional 
                                Corporation as revenue subject to the 
                                distribution requirements of section 
                                7(i)(1)(A) of the Alaska Native Claims 
                                Settlement Act (43 U.S.C. 
                                1606(i)(1)(A)); and
                                    ``(II) divided annually by the 
                                Regional Corporation among all 12 
                                Regional Corporations in accordance 
                                with section 7(i) of that Act.
                            ``(v) Further distribution.--A Regional 
                        Corporation receiving revenues under clause 
                        (iv)(II) shall further distribute 50 percent of 
                        the revenues received in accordance with 
                        section 7(j) of the Alaska Native Claims 
                        Settlement Act (43 U.S.C. 1606(j).''.

SEC. 5. PRODUCTION OF OIL FROM CERTAIN ARCTIC OFFSHORE LEASES.

    Section 5 of the Outer Continental Shelf Lands Act (43 U.S.C. 1334) 
is amended by adding at the end the following:
    ``(k) Oil Transportation in Arctic Waters.--The Secretary shall--
            ``(1) require that oil produced from Federal leases in 
        Arctic waters in the Chukchi Sea planning area, Beaufort Sea 
        planning area, or Hope Basin planning area be transported by 
        pipeline to onshore facilities; and
            ``(2) provide for, and issue appropriate permits for, the 
        transportation of oil from Federal leases in Arctic waters in 
        preproduction phases (including exploration) by means other 
        than pipeline.''.

SEC. 6. AUTHORIZATION OF ACTIVITIES AND EXPORTS INVOLVING HYDROCARBON 
              RESOURCES.

    (a) Definition.--In this section, the term ``United States person'' 
means--
            (1) any United States citizen or alien lawfully admitted 
        for permanent residence in the United States; and
            (2) any person other than an individual, if 1 or more 
        individuals described in paragraph (1) own or control at least 
        51 percent of the securities or other equity interest in the 
        person.
    (b) Authorization.--Notwithstanding any other provision of law 
(including a regulation), United States persons (including agents and 
affiliates of those United States persons) may--
            (1) engage in any transaction necessary for the exploration 
        for and extraction of hydrocarbon resources from any portion of 
        any foreign exclusive economic zone that is contiguous to the 
        exclusive economic zone of the United States; and
            (2) export without license authority all equipment 
        necessary for the exploration for or extraction of hydrocarbon 
        resources described in paragraph (1).

SEC. 7. TRAVEL IN CONNECTION WITH AUTHORIZED HYDROCARBON EXPLORATION 
              AND EXTRACTION ACTIVITIES.

    Section 910 of the Trade Sanctions Reform and Export Enhancement 
Act of 2000 (22 U.S.C. 7209) is amended by adding at the end the 
following:
    ``(c) General License Authority for Travel-Related Expenditures by 
Persons Engaging in Hydrocarbon Exploration and Extraction 
Activities.--
            ``(1) In general.--The Secretary of the Treasury shall 
        authorize under a general license the travel-related 
        transactions listed in section 515.560(c) of title 31, Code of 
        Federal Regulations, for travel to, from, or within Cuba in 
        connection with exploration for and the extraction of 
        hydrocarbon resources in any part of a foreign maritime 
        Exclusive Economic Zone that is contiguous to the United 
        States' Exclusive Economic Zone.
            ``(2) Persons authorized.--Persons authorized to travel to 
        Cuba under this section include full-time employees, 
        executives, agents, and consultants of oil and gas producers, 
        distributors, and shippers.''.
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